Entravision Communications

Consolidated Q2 2026 revenue was $227.9 million, up 126% year over year, and consolidated operating income was $30.0 million versus an operating loss of $0.8 million in Q2 2025. The company reported consolidated segment operating profit of $36.7 million, while corporate expenses were $6.6 million, up 3% year over year, mainly from noncash stock-based compensation. In Media, revenue was $45.1 million, down 1% year over year, and operating loss was $3.3 million versus operating profit of $0.4 million in Q2 2025; Media operating expenses rose $1.6 million, or 4%. In ATS, revenue was $182.8 million, up 230% year over year and 18% sequentially, and operating profit was $40.0 million, up 673% year over year and 17% sequentially. Cash and marketable securities were over $83 million at quarter-end, credit facility debt was about $158 million after a $5 million payment, and the quarterly dividend remained $0.05 per share, or about $4.6 million. For Q3 2026, management said ATS revenue is expected to decline sequentially from Q2, though Q3 and Q4 should each still post more than 100% year-over-year growth.

Michael Christenson framed the quarter as a story of two businesses: Media is being rebuilt through added local sales headcount, more digital selling capability, more local news production, and direct political sales, while ATS is being scaled with heavier investment in AI, product, engineering, infrastructure, sales, and customer service. His tone was upbeat about the long-term strategy but candid that Media still needs work to improve profitability. He also highlighted the upcoming election cycle and the importance of Latino vote outreach, plus the ongoing goal of renewing the TelevisaUnivision affiliation agreement before it expires at the end of 2026.

Mark Boelke emphasized the size of the ATS outperformance and the costs required to support it. He noted ATS revenue of $182.8 million, up 230%, with operating profit of $40.0 million, while ATS operating expenses rose 85% or $13.9 million due to higher cloud costs, commissions, performance compensation, and added staff. On the balance sheet, he said cash and marketable securities were over $83 million, debt was reduced by $5 million to about $158 million, and the company paid $4.6 million in dividends, or $0.05 per share, with another $0.05 dividend approved for Q3.

The only substantive analyst question asked about new large customers showing up in accounts receivable and customer concentration, especially whether any major ramps were visible in Q3. Management declined to discuss individual customers for competitive and confidentiality reasons, but said winning larger customers is a priority and that large accounts can create meaningful quarterly variability in ATS revenue. The answer reinforced that the business is intentionally pursuing bigger clients even if that makes results less predictable.